Governor of the Central Bank of Russia Elvira Nabiullina and Deputy Governor Alexei Zabotkin made a statement to the press after the Central Bank unexpectedly decided to keep the key interest rate unchanged at 21%.
Nabiullina said the central bank was considering three options: keeping the interest rate steady, raising it to 22% or increasing it further to 23%. Ultimately, the board decided that keeping the interest rate steady was a stronger signal for the economy.
“From a forward-looking policy perspective, the stronger signal was that credit growth was slowing,” Nabiullina said. If this trend is confirmed at the February meeting, it could indicate that the desired level of monetary tightening has been achieved, she added.
Addressing concerns about the ruble's performance, Nabiullina reiterated that Russia maintains its floating exchange rate policy and does not aim to keep its currency at a certain level.
“Our exchange rate is floating, we do not have a goal of keeping it at a certain level,” he said. However, he explained that currency interventions are made in case financial stability risks that the central bank does not currently foresee arise.
Nabiullina reaffirmed the central bank’s cautious approach to cryptocurrencies, distinguishing between domestic and international use cases.
“We continue to believe that cryptocurrencies should not be used as a means of domestic payment,” he said. However, while he supports projects involving cryptocurrencies for external payments, he expressed his absolute opposition to their use within Russia’s domestic financial system.
Nabiullina also added that they do not plan to invest in cryptocurrencies.
*This is not investment advice.
